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3. THE POLITICAL DIRECTOR CHRISTIANSEN TOLD ME THAT OUR REFUSAL TO ALLOW SAS TO OPERATE TO HONG KONG WAS STILL A CAUSE OF IRRITATION ON THE SCAND INAVIAN SIDE AND WAS AN ELEMENT IN SCANDINAVIAN THINKING LEADING TO THE DENUNCIATION OF THE ASA. HE ALSO HINTED THAT SAS HAD TAKEN A MORE MERCENARY LINE TOWARDS THE APPLICATIONS AND THE ASA THAN HAD THE THREE GOVERNMENTS. (WE SHOULD RESPECT HIS CONFIDENCE IN THIS MATTER).

LAMB

[COPIES SENT TO CAD/DOT]

FILES

MAED

WED HK & GD

NEWS D

MR BUTLER MR BURROWS MR HIBBERT MR SUTHERLAND

COPIES TO

MR GARDINER LEGAL ADVISERS

BENTIAL

CONFIDENTIAL

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